Key Takeaway:
- Bitcoin dropped ~4% as Fear and Greed Index plunged to 5/100.
- Roughly 136,000 traders were liquidated within 24 hours amid stress.
- Whales led exchange inflows while short-term holders realized losses, pressuring prices.
Bitcoin (BTC) dropped about 4% as sentiment slid to extreme fear. As reported by Cointelegraph, the Bitcoin Fear and Greed Index fell to 5/100 while roughly 136,000 traders were liquidated within 24 hours, refocusing attention on Bitcoin ETF inflows and on-chain metrics.
According to CoinDesk, on-chain data from Glassnode and CryptoQuant show large holders led exchange inflows as short-term holders realized losses, reinforcing downside pressure. This flow mix often accompanies de-risking phases and elevated intraday volatility.
Institutional activity remains a swing factor, with Bitcoin ETF inflows via vehicles such as BlackRock’s iShares Bitcoin Trust (IBIT) potentially absorbing supply at times. However, persistent realized losses and whale-driven inflows can outweigh incremental demand during stress.
At the time of writing, BTC trades near $64,778 with sentiment flagged Bearish. Volatility is about 11.03% (very high), RSI(14) is ~37.87, and 12 of the past 30 sessions closed green.
As per Cointribune, Bitcoin’s short-term Sharpe Ratio recently printed about −38.38, a rare reading historically observed near past cycle troughs. Such extremes indicate disproportionate recent downside versus risk-adjusted returns, but they need not signal an immediate reversal.
This risk‑reward profile aligns with a broader picture of capitulation signals and cautious accumulation being tracked by market observers. Views differ on timing and durability of any stabilization phase.
“Bitcoin’s Sharpe Ratio has plunged to about −38.4, a level that’s historically been seen in accumulation zones as risk becomes more ‘priced in’,” said Michaël van de Poppe, market analyst.
Overall, sentiment and on-chain stress remain fragile. Until losses ease and exchange inflows rebalance, volatility and downside risk may persist even as value‑oriented demand intermittently reappears.
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